New Delhi: Hindustan Petroleum Corporation Ltd (HPCL) on Tuesday reported return to profit in the second quarter of the current fiscal year on the back of a rise in refining margins and domestic fuel sales.
Net profit of Rs 701 crore in July-September came against a loss of Rs 317 crore in the corresponding period of the previous financial year, HPCL chairman and managing director Mukesh K Surana told reporters here.
"The increase in profit is due to higher domestic market sales and reduced inventory loss," he said.
HPCL earned $3.23 on turning every barrel of crude oil into fuel in the second quarter compared with $2.74 a barrel gross refining margin in the year-ago period.
Domestic sale of petroleum products rose 3.1 per cent to 8.02 million tonnes.
"Also, inventory loss on marketing operations was down to Rs 359 crore from Rs 1,406 crore in the second quarter of last fiscal. Inventory loss for refineries came down to about $1 per barrel in July-September from $4.75 a year ago," he said.
Gross sales were up marginally at Rs 47,750 crore during July-September against Rs 46,299 crore in the year-earlier period.
The firm's refineries in Mumbai and Visakhapatnam processed 4.04 MT of crude during July-September as against 4.21 MT a year ago.
During April-September, HPCL registered gross sales of Rs 99,350 crore, down from Rs 1,01,039 crore last year, mainly because of drop in oil prices.
Net profit more than doubled to Rs 1,297 crore, the best ever half-yearly performance, he said.
"The increase in profit is due to increased refining throughput, higher domestic market sales and inventory gains," he said.
During April-September 2016, domestic sales of petroleum products increased to 16.91 MT from the earlier 16.24 MT.
HPCL's refineries in Mumbai and Visakhapatnam processed 8.52 MT of crude during April-September as against 7.96 MT a year earlier.
The combined GRM during April-September 2016 was $5.12 per barrel as against $5.45 in the corresponding period of the previous year, primarily due to reduction in cracks.
He said pursuant to the approval of shareholders at AGM on September 8, the company has issued bonus shares in the ratio of two shares of Rs 10 for one existing of Rs 10 each.
Consequent on the issue of bonus shares, the paid-up capital has increased to Rs 1,015.88 crore from Rs 338.63 crore.
He said HPCL continued to be the No. 1 lube marketer in the country and consolidated its leadership position by recording a market share gain of 3.2 per cent during April-September 2016 to reach 42.6 per cent in the PSU category.